Types of Expenditure
Insurance premiums (give the category of expendture)
Revenue expenditure
unable to pay debts owed
insolvent
Name 3 sources of internal sources of finance
R&D (indicate the category of expenditure)
Capital expenditure
a primary market offer to the existing shareholders to buy additional shares of the company
A rihts issue
Another name for retained profit
ploughed-back profit
Stocks of raw materials (give the category of expendture)
Revenue expenditure
Define assets
the possessions of a business with a monetary value. Assets are owned by a business. Typical examples include: buildings, land, machinery, equipment, stocks (inventories) and cash.
Retained profit does not incur any interest charges. TRUE OR FALSE?
True
Tools (indicate the category of expenditure)
Capital Expenditure
Define liabilities
the debts of a business, i.e. the money owed to others. Typical examples include any money owed to financiers (such as banks), trade creditors, and the government (for profits tax)
Fixed assets are items a business owns and uses for a period of more than 6 months. TRUE or FALSE?
False (12 months)